Apple earnings: Forget taxes and batteries, the $1,000 iPhone X remains the story

“Apple Inc. has received a lot of attention for its statements about repatriating cash and slowing down older phone batteries, but investors remain focused on iPhone sales ahead of the company’s holiday-quarter earnings report,” Emily Bary writes for MarketWatch. “The world’s most valuable company is expected to report record revenues for its fiscal first quarter on Feb. 1, buoyed by sales of the $1,000 iPhone X. The flagship phone was in short supply during most of the quarter, but its lofty price should help lift Apple’s top line. Analysts are calling for revenue of $86.8 billion, up 11% from a year ago.”

“Analysts predict that the average price of phones sold during the quarter rose to a record of $752, up more than $50 from a year ago, according to FactSet,” Bary writes. “Many analysts think the average expectation is too low, though. Mizuho analyst Abhey Lamba said projections for a $50 bump in ASP underestimate the impact of the iPhone X, writing in a note to clients that “expectations seem very low.” He projects an average selling price of $780 to $790, which he thinks could lead to better than expected overall results.”

“Analysts on average expect Apple to report adjusted net income of $19.6 billion, up from $17.9 billion a year ago, according to FactSet. The consensus estimate calls for earnings per share of $3.82, compared with $3.36 for the year-ago quarter,” Bary writes. “Analysts are calling for revenue of $86.8 billion on average, up from $78.4 billion a year ago… On average, analysts are expecting that Apple sold 79 million iPhones during the quarter, generating $59.7 billion in revenue. The company sold 78 million iPhones a year ago.”

Read more in the full article here.

MacDailyNews Take: 79 million iPhone units is way too low.

Apple likely sold over 100 million iPhones in Christmas quarter – January 26, 2018
Apple’s December quarter iPhone sales could top a stunning 100 million units – January 24, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
iPhone X accounted for 1 in 5 iPhones sold by Apple in America last quarter – January 22, 2018
Apple to release Q118 earnings, webcast live conference call on February 1st – January 8, 2018
Apple’s iPhone X offers the best smartphone display in the world and its also the most resistant to OLED burn-in – January 2, 2018
DisplayMate: Apple’s iPhone X has the most color accurate display we’ve ever measured; it is visually indistinguishable from perfect – November 8, 2017


    1. You should say the Mythical Mac Pro- like the Loch Ness Monster, a Moderate Republican or Atlantis.
      I really wonder if the promise of a new Mac Pro was a canard to hush the rumblings among the Mac faithful.

      1. Ummm, Apple promised the iMac Pro… they delivered.

        Why would you think they weren’t serious about a new Mac Pro? It was reported that Apple said “much later” as far as the Mac Pro was concerned. Most people in the know think it’ll follow the same reveal/release path as the iMac Pro… we’ll get a glimpse of it at WWDC and it’ll ship by the end of the year.

        1. signals with strong likelihood, the Mac Pro will be stellar, imo. Did anyone believe the iMac Pro would be the most powerful Mac ever and get astounding reviews? Does anyone believe Apple would issue a lesser machine and call it the Mac Pro?
          Apple has got an issue with a product’s “when,” but the “what” related to the MacPro, I bet will please the pros in need/want.

    1. You know those estimates are a load of crap. The tens of billions of dollars that Apple has spent on R&D in the past decade or more culminated in the iPhone X. If by chance it is anywhere near $300, it never would have been possible without ordering tens of millions of units in advance and developing the ultra-expensive infrastructure to make it happen.

    2. Nobody outside of Apple knows what it costs Apple to build an iPhone and nobody could possibly have any idea of how much it costs to develop a new iPhone. It’s all guesses.

      We know that Apple makes a healthy profit because they publish their margins in their quarterly results, but it’s nowhere near as large a profit as you’re implying.

      There are other smartphone selling for around $1,000. Do you imagine that those manufacturers are making about $700 profit per phone as well?

  1. We will find out next Thursday. Enough time for the market to go up or down depending on how much desire there is to cash in on the recent rise.
    12% away from the magical $1T market cap. Can’t see that happening in the next week.

  2. Hence the reason for fast approaching the first $1T value company, and the money was made mostly off a little gadget called iPhone. A good success story as a phone company though.

  3. The adoption of the new 2017 iPhone models are much lower than in previous years. But, there are some caveats this year compared to other years. For example, the ASP on the iPhone X should be higher than the 2016 iPhone 7 Plus phones. Plus, there could be more second tier (iPhone 7 and iPhone 7 Plus) phones sold this year compared to other years.

    The following are Mixpanel’s adoption percentages:

    Dec 28, 2015 –
    iPhone 6s and iPhone 6s Plus ~16.38%

    Dec 29, 2016 –
    iPhone 7 and iPhone 7 Plus ~25%

    Dec 29, 2017 –
    iPhone 8, iPhone 8 Plus, iPhone X ~14.16%

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